Our-in depth analysis of the global polyethylene terephthalate market which includes the following segments:
Global Polyethylene terephthalate market is further classified on the basis of region as follows:
Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa), Market size, Y-O-Y growth, Future forecast & Opportunity AnalysisGrowth Factor and Challenges
The major growth factor for the polyethylene terephthalate market is the substituting traditional glass packaging with that of PET packaging. Some of the key features include recyclability of PET is also expected to fuel the polyethylene terephthalate market over the forecast period. Polyethylene terephthalate is projected to capture the highest growth in packaging application primarily due to the increasing demand for effective and rigid packaging materials and also growing consumer preference toward high quality packaging material.
The one of the challenges is volatility in prices of crude oil which is changing and the increase in formulation of strict government rules related the application of polyethylene terephthalate hamper the growth of the global PET market.
Global polyethylene terephthalate market was valued at approximately USD 24 Billion in 2017, and is expected to reach USD 39 Billion by 2027.Global polyethylene terephthalate market is anticipated to exhibit CAGR of 7.1% from 2017 to 2027. PET is generally formed by the polymerization of ethylene glycol and terephthalic acid and is internationally recognized as a non-toxic in nature, lightweight, safe, strong and flexible material, which is fully recyclable. It is used in various application industries such as beverage packaging, consumer goods, sheets & films, food packaging, automotive, and construction. Increasing demand for PET containers particularly from food and beverage sector and also growing demand for frozen & processed food are major factors that drive the polyethylene terephthalate market.
The global Polyethylene terephthalate market is segmented into application, end user and geography. Asia Pacific is one the most prominent region that dominated the overall market with a share of more than 37% in 2017 owing to the busy lifestyle coupled with the increasing demand for PET bottles in Asian countries. In Asia Pacific, China is anticipated to be dominating country followed by India and Japan.
The Middle East and Africa is expected to observe a significant growth over the forecast period due to the increasing consumption of packaged food and beverages which increase the demand for polyethylene terephthalate products.
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In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Sadaf Naaz, Mohd Shadab